# In the matter of Dheeraj Aviation Ground Equipment Private Limited

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03304. Transtec Overseas Private Limited, the Operational Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dheeraj-aviation-ground-equipment-private-limited-913ed166

## Summary

### Background

Transtec Overseas Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dheeraj Aviation Ground Equipments Private Limited, the Corporate Debtor. The application was based on unpaid VAT liability related to transactions between the parties during the financial years 2008-09 and 2014-15. The Operational Creditor claimed that the Corporate Debtor had failed to pay the VAT amount to the Sales Tax Authorities, leading to demand notices being issued to the Operational Creditor.

## Facts

Transtec Overseas Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dheeraj Aviation Ground Equipments Private Limited (Corporate Debtor). The application was based on unpaid VAT liability related to transactions between the parties during the financial years 2008-09 and 2014-15. The Operational Creditor claimed that it had paid sales tax/VAT on behalf of the Corporate Debtor for job work in 2008-09, amounting to Rs. 2,03,609, and that the Corporate Debtor had failed to submit Form 'C' worth Rs. 3,72,759 against job work in 2014-15. The total debt in default was shown as Rs. 9,82,972, including interest. The Corporate Debtor argued

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## Issues and analysis

### Issue 1: Whether the unpaid VAT liability constitutes an 'operational debt' owed by the Corporate Debtor to …

**Ratio:** Statutory dues like income tax, VAT, etc., fall within the meaning of 'operational debt'

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**Reasoning:** The court reasoned that the amount claimed by the Operational Creditor represented

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**Interpretation:** Section 5(21) of the Code defines 'operational debt' as a claim in respect of

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**Application:** In this case, the court found that the VAT liability was owed to the Sales Tax

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Transtec Overseas…
- **Respondents:** Dheeraj Aviation…

## Timeline

- **2008-07-10 — Invoices…**: Operational Creditor purchased aviation ground equipment from the Corporate Debtor during…
- **2014-01-01 — Transactions in FY…**: The Corporate Debtor purchased certain equipment from the Operational Creditor for a sum…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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